The person who performs the banking activities such as accepting of deposits, lending money, withdrawing facilities, exchanging of money is known as a banker.
The bank can cash your postdated check at any time, even before its authorized date, unless you specifically instruct it otherwise. This means that you don’t, have a claim against your bank unless you notified it not to release the funds. You are probably thinking that if the cheque is post-dated, then the issuer of the cheque can anytime call the bank and stop payment.
Banker incur –
- If someone gives you a post-dated cheque, you have the right to deposit that cheque in the bank when the due date arrives.
- If the cheque issuer instructs the bank to “stop-payment” or otherwise the cheque is dishonored, you can file a complaint under section 138 of the negotiable instruments act.
- Hence, legal proceedings can start against that person on the basis of a post-dated cheque.
Different banks have dissimilar policies, but the common of banks put off the carry out of post-dating cheques. Many state in their terms and conditions that post-dated cheques should not be written, while some include a note at the front of checkbooks, saying post-dated cheques should not be written. When the customer gives notice to the banker for closing his account, the banker must not pay the customer’s cheques after that date, i.e., the date of closing of the account.